"I believe stablecoins have the potential to expand the global reach of the dollar in the digital space," stated Sacks.
According to the cryptocurrency czar under the Trump administration, stablecoins could generate "potentially trillions of dollars" in new demand for U.S. Treasury bonds, which would help support the country's debt and lower long-term interest rates.
Sacks emphasized how stablecoins could increase the influence of the U.S. dollar in the global financial system.
The White House had previously expressed its commitment to strengthening U.S. dollar sovereignty, "including measures to promote the legal and legitimate development and expansion of dollar-backed stablecoins worldwide," according to an executive order signed by Trump on January 23.
While backing the growth of stablecoins, the executive order also prohibits the creation and potential implementation of a central bank digital currency (CBDC), focusing instead on U.S.-backed stablecoins as a form of digital dollar.
Meanwhile, USDC has gained legal recognition in various global economies, including Canada and the European Union, where it became the first issuer to comply with the Crypto Asset Markets framework in July 2024.
With USDT capturing more than half of the stablecoin market, it’s likely to attract more attention in the U.S., especially now that the Trump administration has expressed interest in bringing stablecoins to the country.
Paolo Ardoino, CEO of Tether, told Cointelegraph in October 2024 that Tether is the "best partner of the U.S. government" because its issuer holds more U.S. securities than Germany and "much more than any other competitor or financial institution in the world."
"We're proud to decentralize ownership of U.S. debt, making the country much more resilient," added Ardoino.
beeeBeeeBEEEEE
